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Abigail has a margin brokerage account. During the year, Abigail purchased on margin 500 shares of DEF common stock at $35 per share. The current
Abigail has a margin brokerage account. During the year, Abigail purchased on margin 500 shares of DEF common stock at $35 per share. The current margin requirement is 55%, but the broker that Abigail uses has a 60% margin requirement. If the current price of DEF stock is $20 per share and the maintenance margin requirement is 40%, how much money must Abigail commit due to the margin call?
$500 |
$1,000 |
$1,875 |
$7,500 |
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